How LZ's Tax Help Guide can assist you all year long

by LegalZoom Staff
updated May 11, 2023 ·  1min read

To prepare your business taxes, we've provided a few resources to get you ready.

Get your business ready for taxes

Gather your income and expenses

First, gather your income and expense documents. This could be from bank statements, credit card statements, invoices, or receipts.

Address how to pay yourself

If you made an election to be treated as an S corporation, it's important that you address how you pay yourself, such as by issuing a reasonable salary through payroll, taking cash distributions out of the LLC's bank account, or a combination of both. The correct choice depends on many factors you will want to consider and discuss with your tax expert. Take a look at these articles for helpful tips:

Record your transactions

When recording transactions, only include business income and expenses. You can do this year-round to ease the burden during tax season.

Personal expenses are not deductible on your personal taxes. It's important not to commingle your personal and business accounts to ensure your books and records are accurate.

Don't have QuickBooks Online?

That's OK. Go here for a Business Income & Expense worksheet to help you record your transactions so that you are ready for tax time. 

If you are using QuickBooks Online, follow these steps

1. Make sure all your income and expense transactions are recorded. Here are some links to help you do this:

2. Has everything been recorded? The next step is to “reconcile your accounts."

3. Now that you are reconciled, it's time to review your Profit and Loss Report. This video below will help you get started:

Connect with your tax expert

Reach out to a tax expert regularly—especially toward the end of the year—to discuss how to get the best possible tax outcome and other potential recommendations, such as making quarterly estimated tax payments.

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About the Author

LegalZoom Staff

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This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of the author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.